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April 2021 Housing Market Update (NWMLS Press Release)
Northwest MLS brokers say bidding wars, escalating prices, and buyer fatigue are widespread
*NOTE* – the data we are looking at is from the full month of March.
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington:
- double-digit price hikes were widespread across the 26 counties included in the report
- pending sales (homes where the seller accepted an offer) surged 40.6%% compared to February
- while sales were up, there was a 55.9% decline in total active listings at the end of the month compared to last
- across the whole NWMLS, median prices surged 19.5% compared to a year ago
- prices rose in every county served by NWMLS, with seven counties reporting year-over-year price rises of 25% or more
- the local market is nearly sold out all the way up into luxury price ranges, not due to a lack of new listings, but because of high buyer demand
- with demand outstripping supply, prices tend to rise
- the Seattle area ranked second nationally (behind Phoenix) in home price appreciation for the past year
- mortgage rates and inflation are starting to go up, along with lumber costs, which will affect the costs of new construction
To read the full press release, click here.
March 2021 Housing Market Update (NWMLS Press Release)
Housing market stays hot despite some “lousy” February weather
*COVID UPDATE: open houses are allowed with up to 10 visitors practicing social distancing and wearing masks.
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington:
- the market continues to be hot, with residential inventory tight and median prices rising year-over-year by double digits across most of the counties in the NWMLS
- total active listings of single family homes were down 44% from a year ago, mostly because homes are selling fast and few are staying on the market
- there is very little inventory sitting on the market unsold, except for the Seattle city core
- condo buyers will find a bit more selection, with inventory up almost 8% from a year ago, and median prices more stable compared to single-family homes
- sales in February were up 6.9% compared to January, which shows that neither the snow we had or the uptick in mortgage interest rates deterred buyers
- the average interest rate of a 30-year fixed-rate mortgage was 3.02% for the week ending March 4, still very low historically
- “The intensity we’re seeing should come down slightly as more available homes enter the market, but we have to play catch-up with pent-up buyer demand first”
To read the full press release, click here.
February 2021 Housing Market Update (NWMLS Press Release)
Pandemic presents new option for home buyers as market “kept foot firmly on the accelerator”
*COVID UPDATE: open houses are allowed with up to 10 visitors practicing social distancing and wearing masks.
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington:
- the market “ignored the traditional winter slowdown and kept its foot firmly on the accelerator in January”
- homebuyers may want to consider condos as an option
- condos in King County have about 2.4 times the inventory of single family homes, which means the condo market is less competitive
- condo prices in King County were actually down about half a percentage point compared to the same time last year
- COVID-19 has likely been the cause of the rise of condo inventory, especially downtown and in business districts, as people choose to move farther away from urban areas in favor of more space
- there was a slight uptick in new listings in King, Pierce, and Snohomish counties last month
- demand is still very strong as evidenced by year-over-year price growth being well above long-term averages
- “The economics of scarcity are driving price sup at an unsustainable pace”
- “If interest rates weren’t historically low, buyers would be unable to afford the escalating cost of housing”
- low inventory (down 43% compared to last year) suggests continued price growth into the spring
To read the full press release, click here.
December 2020 Housing Market Update (NWMLS Press Release)
Northwest MLS brokers say real estate activity across Washington remains strong
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington:
- buyer demand remains strong, while inventory is too low to satisfy the demand
- buyers must be ready to compete, and they need the right search and offer strategies
- more activity than there normally is this time of year
- across the MLS, the number of sales is up about 23% compared to a year ago
- prices are up about 14% from a year ago
- inventory is down about 43% compared to last year
- inventory for Seattle condos is actually up about 61% compared to last year, with prices rising almost 9%
- mortgage interest rates hit their lowest level for the 14th time this year, currently at 2.71% for a 30-year fixed-rate mortgage
- the so-called “COVID Effect” is causing buyers to want more space, inside and outside, for working and schooling from home
To read the full press release, click here.
November 2020 Housing Market Update (NWMLS Press Release)
Anxiety among home buyers “incredibly high” as they vie
for unpreceded shortage of homes across much of Washington state
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington.
- active listings were down 40% compared to the same month last year
- pending sales were up 16% and closed sales were up 30% compared to last year
- interest rates remain historically low, offering increased affordability for buyers, which also comes at the cost of more buyers competing with each other
- Boeing’s announcement of layoffs has not shown any negative effect on the market so far
- areas outside King County are increasingly competitive and prices are rising, but still far below King County. The median price single family home in Snohomish county (excluding condos) sold for about $165,000 less than in King County (580,000 vs $745,000)
- open houses are permitted again with up to five visitors on the property at one time, in addition to the hosting broker
- condo buyers have less pressure in some parts of the market, with new listings 38% higher than last year at this time
To read the full press release, click here.
October 2020 Housing Market Update (NWMLS Press Release)
September’s home sales reached highest level since June 2018
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington.
- September’s closings marked a jump of nearly 28% from the same month a year ago
- inventory is down 43% from a year ago
- pending sales are up 23% from a year ago
- prices for single family homes and condos combined are up 19% from a year ago
- it’s too soon to make any predictions about how Boeing’s announcement to move 787 production to South Carolina away from Everett will affect the Snohomish County housing market
- supply continues to be inadequate to meet demand
- in King County, the median sale price for single family homes was $754,600 (median means half sold for more, half sold for less)
To read the full press release, click here.
September 2020 Housing Market Update (NWMLS Press Release)
Would-be homebuyers have more buying power, but also more competition for meager inventory
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington.
- all-time low interest rates mean home buyers have more buying power, but the lack of inventory and increasing home prices in many parts of Washington are leaving many buyers unable to take advantage of these attractive rates
- some things buyers are doing to win offers:
- waiving inspections and other protections
- paying more than a home is worth
- agreeing to pay the difference in cash between a low appraised value and the sales price
- there is rising demand for lower density housing in outer suburbs, probably due to more people being able to work remotely
- pending sales are outpacing new listings, causing months of inventory to shrink to less than a month in 9 counties
- prices are appreciating at double-digit rates in most counties in the NWMLS
- for last month’s closed sales, prices increased nearly 14% system-wide compared with a year ago
- COVID conditions have had little or no effect on buyers and sellers closing transactions.
To read the full press release, click here.
August 2020 Housing Market Update (NWMLS Press Release)
Opportunities abound for home buyers and sellers, but brokers say “don’t delay”
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides data for most of Western Washington.
- pent-up demand from homebuyers meant inventory remained tight
- pending sales jumped nearly 14% from a year ago
- inventory remained well below the level from last year (down about 39%)
- interest rates at historical lows mean buyers can get much more for their money (many buyers are getting rates at under 3%)
- depleted inventory means multiple offers in just about every market and at every price point
- the need for housing outweighs the fears of coronavirus
- suburban lifestyle continues to draw buyers especially with remote work becoming more common
- with low inventory, prices continue to increase, but inventory looks to be inching up
- demand will continue to far outstrip supply for quite a while
- King County median price for homes and condos up 7.2% from a year ago to $670,000
To read the full press release, click here.
Interest Rates at 12-Month Lows
Interest rates for mortgages are now around the low 4% range for a 30-year fixed loan.
There’s a general rule of thumb for interest rates that goes like this: for every 1% change in interest rates, you gain or lose 10% buying power. So if you were pre-approved to buy a $500,000 house a few months ago when rates were around 4.5%, you might now be able to afford a $525,000 house (5% more buying power).
It’s also a good time to refinance into a lower rate, which could save you tens of thousands of dollars in the long term.
Talk to your mortgage consultant today, and if you don’t have one already, I’m happy to provide references to a few that I know and trust.
